The Economics of Carbon Markets for Dairy Industry

Purpose

Dairy farmers in Washington state have been under significant pressure to reduce their carbon footprint in recent years. Dairy cooperative sustainability initiatives such as achieving carbon neutrality by 2050 have left many producers wondering what will be required of them to help their cooperatives meet this goal. Coupled with regulatory pressures to report on their greenhouse gas emissions and the threat of regulation to reduce them, uncertainty remains for producers around the types of climate-smart practices that will enable them to reduce their carbon footprint while remaining economically viable.

Without a thorough understanding of the costs and risks, pressures, or requirements to implement climate-smart practices may inadvertently drive consolidation and the accelerated loss of small to medium sized farms.

What Did We Do?

Utilizing Washington state dairy facility data, I conducted an economic cost benefit analysis of two climate-smart practices that capture GHGs from anaerobic storage: anaerobic digestors and the covered lagoon and flare system and the size of operation needed to implement both practices based on current and historic market conditions and technology costs. Private and public investment in climate-smart practices can have a substantial impact on whether they are economically feasible for producers to implement. I considered the impacts of various levels of cost-share on the size of farm able to adopt the technology based on several economic indicators.

What Have We Learned?

Most dairy farms cannot simply raise their prices to offset the costs of climate-smart practices, therefore it is critical to understand the broad economic impacts of imposing emissions reductions mandates. With consolidation being a well-documented trend across dairy farms in the United States, it is possible that climate regulations will only further exacerbate this trend due to the high capital costs and market risk associated with climate-smart farming that only facilities of scale can take on.

Future Plans

I am actively assisting research right now in Washington state with university and private researchers into dairy farm carbon intensities, across various farm sizes and facility types. An overview of this research may be available by Summer of 2025. Once this work is completed, we will have a better understanding of overall farm emissions and what climate-smart practices may be necessary for farms to implement to help achieve cooperative net zero targets.

Authors

Presenting & corresponding author

Nina Gibson, Agricultural Economist and Policy Specialist, Washington State Department of Agriculture, KGibson@agr.wa.gov

Additional Information

Link to Podcast I hosted, the Carbon and Cow$ Podcast, which covers the risks and opportunities associated with carbon markets for dairy and livestock producers: https://csanr.wsu.edu/program-areas/climate-friendly-farming/carbon-and-cows-podcast/

Link to my program’s homepage at WSDA: https://agr.wa.gov/manure

My Linkedin: https://www.linkedin.com/in/nina-gibson-b482a8119/

The authors are solely responsible for the content of these proceedings. The technical information does not necessarily reflect the official position of the sponsoring agencies or institutions represented by planning committee members, and inclusion and distribution herein does not constitute an endorsement of views expressed by the same. Printed materials included herein are not refereed publications. Citations should appear as follows. EXAMPLE: Authors. 2025. Title of presentation. Waste to Worth. Boise, ID. April 711, 2025. URL of this page. Accessed on: today’s date.

Methane leakage imaging, detection, and quantification from dairy manure biogas capture systems

Purpose

One of the key reasons to implement manure anaerobic digestion (AD) to energy or an impermeable cover and flare (CF) system is to reduce greenhouse gas (GHG) emissions, especially methane (CH4), a potent GHG that makes up most of the US agricultural footprint. These systems that process or store manure, commonly liquid dairy or swine manure, are often referred to as biogas capture systems because they keep oxygen out and contain the manure gases that form primarily from the breakdown of organic matter by microorganisms. The biogas captured is then directed through collection pipes to a utilization system, where the goal is to convert the methane to the less potent carbon dioxide (CO2) via either combustion or electrochemical conversion. For AD systems, the biogas collected is consistent enough to burn or convert for useful energy. For CF systems, particularly those used in the Northeast and Upper Midwest, the biogas collected under the liquid manure storage cover is highly variable throughout the day and year, making it more suitable to flare the methane in the biogas rather than harvest energy. Biogas capture systems must be operated and maintained to avoid methane leaks and venting, particularly to realize their carbon reduction value that can often be monetized. Tools to easily identify point-source biogas losses, such as an optical gas imaging (OGI) camera, are still relatively costly for a bioenergy operation, however they can be used to periodically survey and conduct find it and fix it campaigns to repair and correct problems that may have gone unseen to the naked eye. The ability to better understand where and how biogas leaks and vents occur in AD and CF systems enables better design, operation, maintenance, and public confidence.

What Did We Do?

Twelve biogas capture systems operating on commercial dairy farms in NYS were surveyed once per quarter for at least a year for point-source methane losses using an optical gas imaging (OGI) camera (Teledyne FLIR GF77 uncooled) tuned to the infrared spectrum wavelength range (7 – 8.5 micrometers) where methane gas is absorbed. Any methane loss visualized with the OGI camera was recorded and its characteristics described and reported back to the farm or system owner. Other observations about the methane loss were recorded and losses were measured and/or quantified when feasible. The apparent size of the biogas loss was recorded, primarily by distinguishing between OGI visibility in “normal” camera mode versus “high sensitivity mode (HSM)”. Unique losses versus repeated (by visit) were tracked, indicating ease and motivation to correct the loss. Biogas vents were distinguished from biogas leaks, by characterizing a leak as an unknown or unintended biogas loss during normal operation. Biogas venting was considered loss that occurred by design during abnormal operating conditions, such as overpressure in the digester vessel that could not be immediately corrected with flaring excess biogas.

What Have We Learned?

This work is continuing through this year, and eight sites are completed so far. The results from those sites, that include four AD to energy systems (three electricity generation and one biomethane production) and four CF dairy manure storage systems, have generally highlighted that AD systems experience biogas venting more than biogas leaking whereas CF systems experience more leaking than venting. The number of unique biogas losses found was higher in CF systems than in AD systems, which may be due to their much larger biogas capture surface area that is also susceptible to damage from wind, wildlife, and thermal stress. Additionally, the biogas collection and flare struggle with variable biogas flow, quality, and operational robustness that results in lack of combustion during prolonged periods of the year. Another observation, which requires additional data collection from AD to biomethane systems to have confidence in, is that AD to electricity systems can result in biogas venting and/or unnoticed leaking when the biogas produced is greater than what the installed electric capacity can utilize. Additionally, most if not all AD to biomethane systems are instrumented to detect and measure biogas losses as part of their verification requirements for carbon market programs, making it less likely for losses to go unnoticed or unaddressed.

Future Plans

A methane loss detection protocol for both AD to energy systems and CF manure storage systems was developed by Cornell CALS PRO-DAIRY that has been improved during this project and will continue to evolve. Once the full 12 sites are completed, the protocol will be shared more broadly for reference, and best practices recommended for operations and maintenance to prevent, find, and correct biogas losses. Follow on work may include additional methane loss detection with total loss measurement of AD vessels and manure storage covers, to verify assumed loss rates used as defaults in GHG accounting.

Authors

Presenting & corresponding author

Lauren Ray, Sr. Extension Associate, Cornell University – PRO-DAIRY, LER25@cornell.edu

Additional authors

Jason P. Oliver, Dairy Environmental Systems Engineer, Cornell University PRO-DAIRY;

Peter Wright, Agricultural Engineer, Cornell University

Additional Information

https://cals.cornell.edu/pro-dairy/our-expertise/environmental-systems/climate-environment

Acknowledgements

This work is sponsored by the New York State Department of Agriculture and Markets. Special thanks to our collaborating dairy farms and biogas capture system operators.

 

The authors are solely responsible for the content of these proceedings. The technical information does not necessarily reflect the official position of the sponsoring agencies or institutions represented by planning committee members, and inclusion and distribution herein does not constitute an endorsement of views expressed by the same. Printed materials included herein are not refereed publications. Citations should appear as follows. EXAMPLE: Authors. 2025. Title of presentation. Waste to Worth. Boise, ID. April 7-11, 2025. URL of this page. Accessed on: today’s date. 

Anaerobic Co-digestion of Agro-industrial Feedstocks to Supplement Biogas Produced from Livestock Manure

Purpose

Anaerobic digestion (AD) is commonly used in agriculture to break down livestock manure and produce a sustainable source of energy by producing biogas, which is predominantly methane. Digestion of livestock manure can be supplemented with additional agricultural or industrial organic waste, potentially adding sources of revenue to the farm or digestion facility through tipping fees and additional biogas production. However, quantifying the anticipated impact on digester performance and operation is challenging, particularly as some potential feedstocks have not been studied previously. Understanding how a feedstock might impact a digester’s performance is critical, as digester upsets can lead to loss of revenue or even digester failure.

What Did We Do?

We conducted a set of mono-digestion biomethane potential experiments of several feedstocks currently in use at an agricultural AD facility that accepts mixed industrial waste streams in addition to digesting beef manure. The mono-digestion studies used triplicate 1-L working volume batch digesters which ran for 30-38 days. We tested beef manure, off-spec starch from food manufacturing, slaughterhouse wastewater treatment sludge, waste activated sludge from a corn processing facility, soap stock from glycerin refining, filter press slurry from a food grade water treatment facility, and food waste dissolved air flotation sludge. We also included a treatment for the effluent from the digester’s ammonia recovery system and a mixture of all the feedstocks at the same time. A blank (inoculum only) and positive control (cellulose with inoculum) digester were included as controls. This set of studies is described here as Experiment 1 (E1).

We then conducted a set of co-digestion biomethane potential tests combining the manure pairwise with some of the industrial feedstocks, specifically starch, slaughterhouse waste, soap stock, and filter press slurry (Experiment 2 or E2). These combinations were made at two different ratios of the two feedstocks. The first set of treatments combined the manure and an additional substrate at a 1:1 ratio on a volatile solids basis. The second set of treatments combined the feedstocks proportional to the amounts commonly used in the AD facility providing the materials. A final treatment pairing starch and soap stock at a 3:1 ratio was also included. These co-digestion treatments were conducted in triplicate alongside a single mono-digestion treatment of each feedstock for comparison. Finally, we examined the potential synergistic or antagonistic impacts of these combinations on methane yield and production rate. This was done by comparing the measured methane production at each time point compared to the expected methane production if the feedstocks each contributed additively to the methane production.

What Have We Learned?

Figure 1 shows the cumulative specific biogas production on a volatile solids basis for the mono-digestion experiment (E1). Some feedstocks, such as soap stock and slaughterhouse waste, experienced a substantial lag phase at the beginning of the experiment, which may have been due to the high levels of lipids and proteins.

Figure 1: Average biogas production of all treatments during mono-digestion experiment (Experiment 1).

During the co-digestion experiment (E2), we observed both total yield and kinetic synergy in all treatments. Only two digesters (one of the replicates from the starch and manure proportional treatment and one from the starch and soap stock treatment) produced substantially less (<30%) methane than would be expected for an additive effect for more than one day. This effect can be seen in Figure 2, which shows the cumulative methane curves (corrected for inoculum contribution and averaged over the three replicates) of the mono-digestion digesters for manure and starch individually and the curves for both co-digestion treatments using both manure and starch. Figure 3 shows the same curves for the co-digestion of manure and slaughterhouse waste. These co-digestion treatments show that combining the feedstocks causes an increase in methane production at a faster rate. They also show that co-digestion alleviates the lag phase experienced by the slaughterhouse waste.

Figure 2: Cumulative specific methane production for manure (F1) and starch (F2). F1 + F2 Eq = 1:1 ratio of VS; F1 + F2 Pr = ratio of VS is proportional to what full-scale digester receives.
Figure 3: Cumulative specific methane production for manure (F1) and slaughterhouse waste (F3). F1 + F3 Eq = 1:1 ratio of VS; F1 + F3 Pr = ratio of VS is proportional to what full-scale digester receives.

Future Plans

We plan to continue exploring the impact of co-digestion on methane yield and production rate by using additional combinations of these feedstocks and exploring the impact of macromolecular composition (percentages of carbohydrates, proteins, and lipids) on synergistic effects. These results will help inform current or future agricultural AD operators regarding the use of co-digestion feedstocks for optimal energy production and best practices in selecting new feedstocks for co-digestion.

Authors

Jennifer Rackliffe, Graduate Research Fellow, Purdue University

Corresponding author email address

jracklif@purdue.edu

Additional authors

Dr. Ji-Qin Ni, Professor, Purdue University; Dr. Nathan Mosier, Professor, Purdue University

Additional Information:

https://www.sare.org/wp-content/uploads/2021-NCR-SARE-GNC-Funded.pdf

Acknowledgements:

This material is based upon work that is supported by the National Institute of Food and Agriculture, U.S. Department of Agriculture, under agreement number 2020-38640-31522 through the North Central Region SARE program under project number GNC21-334. USDA is an equal opportunity employer and service provider. Any opinions, findings, conclusions, or recommendations expressed in this publication are those of the author(s) and do not necessarily reflect the view of the U.S. Department of Agriculture. We also thank Purdue’s Institute for Climate, Environment and Sustainability for supporting the dissemination of this work. Finally, we acknowledge the assistance of Gabrielle Koel, Kyra Keenan, Amanda Pisarczyk, and Emily McGlothlin in conducting the laboratory work.

 

The authors are solely responsible for the content of these proceedings. The technical information does not necessarily reflect the official position of the sponsoring agencies or institutions represented by planning committee members, and inclusion and distribution herein does not constitute an endorsement of views expressed by the same. Printed materials included herein are not refereed publications. Citations should appear as follows. EXAMPLE: Authors. 2022. Title of presentation. Waste to Worth. Oregon, OH. April 18-22, 2022. URL of this page. Accessed on: today’s date.

Overview of the U.S. Agricultural Biogas Industry and AgSTAR Technical Resources

AgSTAR is a voluntary program coordinated by the U.S. Environmental Protection Agency (EPA), in cooperation with the U.S. Department of Agriculture (USDA), that supports farmers and industry in the development and adoption of anaerobic digester (AD) systems. In addition to producing biogas, AD systems can help achieve other social, environmental, agricultural and economic benefits. AgSTAR offers a variety of resources and tools to assist those interested in exploring the use of AD systems, including:

    • Outreach materials addressing system design, selection, and use and project development tools that help assess digester feasibility.
    • Events including workshops and webinars to promote sharing of knowledge, information, and experiences.
    • Website information on operating digesters, including nationwide statistics as well as in-depth project profiles that provide details on digester system design, biogas use, and benefits realized.

AgSTAR’s presentation will provide a market overview of agricultural biogas projects in the United States, including trends and outlook for the future of this sector, and highlight two resources currently under development for industry stakeholders.

What did we do?

AgSTAR’s mission is to educate and inform stakeholders on biogas production in the United States and support the development of new projects. AgSTAR has developed a number of market studies, technical tools and outreach resources for agricultural biogas projects over the years. The AgSTAR national database for digester projects contains a wealth of information on digester projects in the United States. As of January 2019, there are 248 anaerobic digesters operating on livestock farms in the US.  AgSTAR estimates that in 2018, digesters helped reduce 4.27 million metric tons of CO2 equivalent (MMTCO2e). Since 2000, digesters on livestock farms have reduced direct and indirect emissions by an estimated 39.3 MMTCO2e.

The biogas industry in the livestock sector has a lot of room to grow. AgSTAR estimates that biogas recovery systems are technically feasible at more than 8,000 large dairy and hog operations. These farms could potentially generate nearly 16 million megawatt-hours (MWh) of energy per year and displace about 2,010 megawatts (MWs) of fossil fuel-fired generation.

To meet this massive opportunity, innovation is needed.  Several policies and business models that are driving the growth in this sector include:  

    • Policies:  
      • Food Waste Diversion from Landfills
      • Renewable Natural Gas (RNG) Incentives
    • Business Models:  
      • RNG to vehicle fuel
      • Third-party owned and operated systems
      • Eco-markets for co-products

AgSTAR continues to educate stakeholders on these industry trends and encourage new opportunities.

New and Updated products coming soon!

The AgSTAR program pleased to announce two resources coming in 2019 to help facilitate the implementation of AD-biogas projects:

    • AgSTAR Project Development Handbook (3rd Edition) – The Handbook is intended for agriculture and livestock producers, farm owners, developers, investors, policymakers, implementers, and others working in agriculture or renewable energy who are interested in AD/biogas systems as a farm manure management option.  The handbook is being substantially redesigned for this 3rd edition to help users gain insight into AD and current state-of-the-art discussions on project development, economics, co-digestion feedstocks, manure management issues, including agronomic application, potential carbon impacts, and financing/operational/ownership options.  The document provides basic information about biogas production and outlines many of the considerations and questions that should be addressed when evaluating, developing, designing and implementing a farm-based digester project.
    • AgSTAR Anaerobic Digester Operator Guidebook – The Operator Guidebook is a new resource to assist on-farm AD/biogas system operators to increase operational uptime and performance and efficiency as well as to help prevent common pitfalls that can lead to system shutdown and neighbor complaints.  The Guidebook spans nearly every part of the AD and biogas production process, providing industry expert experience and advice on dealing with potential issues within an AD/biogas system. The Guidebook is designed to answer fundamental questions about what it takes to successfully operate and maintain an AD/biogas system on an agricultural operation and it can be used as a resource to maximize profitability by increasing biogas yield, improve biogas quality, and minimize operating and maintenance expenses.  It is intended for use as a training tool for AD/biogas system owners, managers, operators, and other project stakeholders.

What we have learned?

Anaerobic digesters on livestock farms can provide many benefits compared to traditional manure management systems, including:

    • Diversified Farm Revenue
    • Rural Economic Growth
    • Conservation of Agricultural Land
    • Energy Independence
    • Sustainable Food Production
    • Farm-Community Relationships

While technology choices are important when implementing AD projects, a viable business model is critical.  

Future plans

The AgSTAR Program intends to continue working with its government, academia, industry, and non-profit organization stakeholders to promote the use of biogas recovery systems to reduce methane emissions from livestock waste.  This includes sharing information on industry trends; promoting and conducting events and webinars; and preparing outreach materials and project development tools, such as the AgSTAR Project Development Handbook and Anaerobic Digester Operator Guidebook.

Authors

Nick Elger, Program Manager, U.S. EPA AgSTAR & Global Methane Initiative, Elger.Nicholas@epa.gov

Additional information

Additional information and resources can be found on the AgSTAR Program website at: https://www.epa.gov/agstar.

The authors are solely responsible for the content of these proceedings. The technical information does not necessarily reflect the official position of the sponsoring agencies or institutions represented by planning committee members, and inclusion and distribution herein does not constitute an endorsement of views expressed by the same. Printed materials included herein are not refereed publications. Citations should appear as follows. EXAMPLE: Authors. 2019. Title of presentation. Waste to Worth. Minneapolis, MN. April 22-26, 2019. URL of this page. Accessed on: today’s date.

Revenue Streams from Poultry Manure in Anaerobic Digestion (AD)

DUCTOR Corp. has developed a biological process that separates and captures nitrogen (ammonia) from organic waste streams. The biogas industry is a natural platform for this biotechnology as it solves the problem of ammonia inhibition, which has long bedeviled traditional anaerobic digestion (AD) processes. DUCTOR’s technology allows for stabilized and optimized biogas production from 100% high nitrogen feedstocks (such as poultry manure) and significantly strengthens the economics of biogas facilities: relatively inexpensive inputs, optimized gas production as well as new, higher value revenue streams from the organically produced byproducts—a pure Nitrogen fertilizer and a high Phosphorus soil amendment. DUCTOR’s mission is to promote biogas as a renewable energy source while securing efficient waste management and sustainable food & energy production, supporting the development of circular economies.

Purpose

Figure 1. High Nitrogen Feedstock-molecular structure
Figure 1. High Nitrogen Feedstock

High concentrations of ammonia in organic waste streams have been a perpetual challenge to the biogas industry as ammonia is a powerful inhibitor of biogas production. In typical methanogenic communities, as ammonia levels exceed 1500mg/L Ammonia-N, the inhibition of methane production begins until it reaches toxic levels above 3000mg/L. Traditionally, various mechanical and chemical methods have been deployed to lower ammonia concentrations in high nitrogen organic feedstocks prior to or following biodigestion (Figure 1). These methods have proven cumbersome and operationally unstable. They either require dilution with often costly supplemental feedstocks, are fresh water intensive, waste valuable nutrients, or require caustic chemicals injurious to the environment. Without the application of these methods, nitrogen levels will build up in the digester and negatively affect the efficiency of biogas (methane) production. DUCTOR’s proprietary process revolutionizes ammonia removal with a biological approach, which not only optimizes the operational and economic performance of biogas production, it also allows for the ammonia to be recaptured and recycled as an organic fertilizer product (a 5-0-0 Ammonia Water). This biotechnical innovation represents a significant advancement in biogas technology.  

What did we do?

DUCTOR’s innovation is the invention of a fermentation step prior to the classic anaerobic digestion process of a biogas facility (Figure 2).  During this fermentation step in a pre-treatment tank, excess nitrogen is biologically converted into ammonia/ammonium and captured through a physical process involving volatilization and condensation of the liquid portion of the digestate.

 

Typical DUCTOR facility layout
Figure 2. Typical DUCTOR facility layout

We ran a demonstration biogas facility with these two steps in Tuorla, Finland for 2000 hours using 100% poultry litter as fermenter feedstock without experiencing ammonia inhibition of the methanogenesis process. While the control, a single-stage traditional digester, showed increased buildup of toxic ammonia, the fermented material coming out of the first stage of the DUCTOR process (having ~50-60% of its nitrogen volatilized and removed) exhibited uniform levels of nitrogen below the inhibition threshold (Figure 3). This allowed a stable and efficient digestion by the methanogenic microbial community in the second stage digester. The fermentation step effectively eliminates the need for co-digestion of poultry manures with other higher C/N ratio substrates.

Figure 3: Ammonium concentration & Methane quantities in treated and untreated substrates
Figure 3: Ammonium concentration & Methane quantities in treated and untreated substrates

What we have learned?

In addition to solving the problem of ammonia inhibition, DUCTOR’s innovation realizes the separation of valuable recycled nutrients in a manner that can produce additional revenue streams. The result of the fermentation process in the first stage digestion tank is an organically produced non-synthetic ammonia (NH4OH), which is condensed and collected. This ammonia water product can be marketed and sold as an organic fertilizer as it is the result of a completely biological process with no controlled chemical reactions. The non-synthetic ammonia produced comes from the digestion of poultry litter by ammonifying microorganisms in anaerobic conditions. Furthermore, this ammonia water is in a plant available form that can be metered onto fields based on crop demands and thus reduce the amount of excess nitrates leaching into the water table and surrounding watershed.

The solids byproduct that results from the completion of the anaerobic digestion process has a large fraction of phosphorus and potash. This digestate can be dried and pelleted to produce a high-phosphorus soil amendment. While recognizing demand for this product would vary by region based on existing phosphorus levels in the soil, it offers a transportable & storable way to return these valuable elements to the nutrient cycle.

nutrient life cycle

Finally, the importance of gas production as a form of sustainable, renewable energy cannot be understated. With 2/3rds of the world’s greenhouse gas emissions coming from the burning of fossil fuels for energy or electricity generation,1 biogas derived from anaerobic digestion can displace some of those processes and reduce environmental greenhouse gas emissions.2 Currently, there are many state and federal policies focusing on renewable energy credits and low carbon fuel standards to incentivize this displacement.3 With the ability to unlock poultry litter as an additional AD feedstock, biogas facilities can offer greater volumes of biogas production per ton of manure than either dairy or swine.

Future plans

We have several commercial projects that will feature the DUCTOR technology at various stages of development in North America. The demonstration facility at Tuorla has been disassembled and shipped to Mexico where it will be reassembled as part of a larger commercial project there. In cooperation with our Mexican partner, we will demonstrate successful operations under a new set of conditions, including different climate and a new source of poultry litter from different regional growing practices. We further intend to demonstrate the highly efficient water use of the process in a drought-prone area.

Additionally, we have received approval from the North Carolina Utilities Commission for entry into their pilot program for injecting biomethane into North Carolina’s natural gas pipelines. Our first project there is expected to begin construction in Spring 2019 to be completed and operational by early 2020. These projects, and others in development, will bring a very attractive and new manure management option to poultry farmers, while recycling nutrients from the waste stream and returning them to the soil in a measurable and sustainable manner.

Author

Bill Parmentier, Project Development, DUCTOR Americas

bill.parmentier@ductor.com

Additional information

https://www.ductor.com

 

1Global Greenhouse Gas Emissions Data, US Environmental Protection Agency (EPA), https://www.epa.gov/ghgemissions/global-greenhouse-gas-emissions-data

2Sources of Greenhouse Gas Emissions, US Environmental Protection Agency, https://www.epa.gov/ghgemissions/sources-greenhouse-gas-emissions

3Methane is a potent greenhouse gas that is over 20 times more damaging on the environment than carbon dioxide. Anaerobic digestion stops the release of methane into the environment by capturing it and using it for energy production or transportation fuel.

Federal incentives include the Rural Energy for America Program (REAP), Alternative Fuel Excise Tax Credit, & Federal Renewable Energy Production Tax Credit to name a few. Examples of state level incentives include various states Renewable Portfolio Standards (RPS) as well as California’s Low Carbon Fuel Standard (LCFS) or Oregon’s Clean Fuels Standard (CFS).

 

The authors are solely responsible for the content of these proceedings. The technical information does not necessarily reflect the official position of the sponsoring agencies or institutions represented by planning committee members, and inclusion and distribution herein does not constitute an endorsement of views expressed by the same. Printed materials included herein are not refereed publications. Citations should appear as follows. EXAMPLE: Authors. 2019. Title of presentation. Waste to Worth. Minneapolis, MN. April 22-26, 2019. URL of this page. Accessed on: today’s date.

Renewable Energy Set-asides Push Biogas to Pipeline

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Purpose

Deriving the most value from the harvesting of organic wastes, particularly waste produced through farming operations, can be quite challenging. This paper describes an approach to overcome the challenges of realizing the best value from harvested farming wastes through aggregation. Included in this description is an overview of the first swine waste-to-energy project in North Carolina based on aggregation of the value stream rather than aggregation of the feedstock, or manure. Also included in the description are an overview of the challenges encountered, approaches to overcome these challenges, and the solutions developed for this breakthrough approach that will foster further development of successful ventures to maximize the value derived from recycled farming wastes.

What did we do?

Increasingly, our civilization is turning to bioenergy sources as an environmentally-friendly, sustainable alternative to harvesting long-buried fossil fuel sources to supply our energy needs. As the land that farmers have cultivated for years becomes encroached more and more by non-farming land uses, society seeks innovations to address its concerns for our future food needs produced in a manner that addresses environmental concerns associated with modern food production, including nutrient recovery, water conservation and reuse, and controlling odors and emissions from agricultural wastes and manures. Collectively, these innovations have been described as ‘sustainable farming’ approaches.

North Carolina is a significant agricultural producer, and as such, a large producer of agricultural wastes. This state also became the first state in the Southeast to adopt a Renewable Energy Portfolio Standard, and is the only state in the U.S. to require a certain percentage of that renewable energy must be generated from agriculture waste recovery, with specific targets for swine and poultry waste. Naturally, the plentiful resources coupled with a regulatory driver for renewable energy worked together to create attention and efforts toward cost-effective and efficient means of supplying our energy needs through organic waste recovery, or bioenergy approaches.

We are only beginning to see a surge in commercial development for the recovery of additional value stream from the waste, such as through the recovery of nutrients, enzymes, and monetized environmental attributes associated with pollution abatement. While manyOptima-KV swine waste to pipeline RNG project forward-thinking farmers have learned that their waste is valuable for supplying renewable energy, it has been unfortunately difficult for an individual farmer to implement and manage advanced value recovery systems primarily due to costs of scale. Rather, it seems, success may be easier achieved through the aggregation of these products from several farms and through the collaborative efforts of project developers, product offtakers, and policy. A shining example of such aggregation and collaboration can be observed from the Optima-KV swine waste to pipeline renewable gas project, located in eastern North Carolina in an area of dense swine farm population.

The Optima-KV project combines, or aggregates, the biogas created from the anaerobic digestion of swine waste from five (5) adjacently located farms housing approximately 60,000 finishing pigs. The Optima-KV project includes the construction of an in-ground anaerobic digester at each farm. The resulting biogas is captured from each farm, and routed to an adjacent, centralized biogas upgrading facility, or refinery, where the biogas undergoes purification and cleaning to pipeline quality specifications. The renewable natural gas produced from this system will be sold to an electric utility subject to the requirements of the North Carolina Renewable Energy Portfolio Standards, and will result in reduced emissions from both the receiving electricity generating unit and the farms, reduced emissions of odors from the farms, and reduced fossil fuel consumption for the production of electricity. The upgraded biogas (RNG) will be transmitted to the electricity generating unit through existing natural gas pipeline infrastructure.

What have we learned?

The innovative design, permitting, and financing for the project is very different than a conventional feedstock aggregation approach, and thus much has been learned. To deliver the RNG to the end user, in this case, multiple contracts with multiple utilities wereGraphic showing how it works required, which presented challenges of negotiating multiple utility connections and agreements. This learning curve was steepened as, at the time of the inception of Optima KV, the state of North Carolina lacked formal pipeline injection standards, so the final required quality and manner of gas upgrading was established through the development of the project.

The project is currently in the beginning stages of construction, and completion is expected by the end of 2017. Given this schedule, the Optima KV project will provide the first pipeline injection of gas – from any source – in the state of North Carolina (all natural gas presently consumed in the state is sourced from out of state).

Future Plans

North Carolina’s potential for agricultural waste-to-energy projects is enormous, given its vast agricultural resources. Combining the potential from agriculture with the bioenergy potential from wastewater treatment plants and landfills, it is estimated to be third in capacity behind only California and Texas. The unique approach to aggregation of value streams from multiple sources, as exhibited by this project, will open the doors for similar aggregation strategies, including the anaerobic digestion of mixed feedstocks such as food waste, poultry and swine waste, animal mortality, fats, oils and grease and energy crops.

Corresponding author, title, and affiliation

Gus Simmons, P.E., Director of Bioenergy, Cavanaugh & Associates, P.A.

Corresponding author email

gus.simmons@cavanaughsolutions.com

Additional information

http://www.cavanaughsolutions.com/bioenergy/

1-877-557-8923

gus.simmons@cavanaughsolutions.com

https://www.biocycle.net/2016/11/10/anaerobic-digest-67/

The authors are solely responsible for the content of these proceedings. The technical information does not necessarily reflect the official position of the sponsoring agencies or institutions represented by planning committee members, and inclusion and distribution herein does not constitute an endorsement of views expressed by the same. Printed materials included herein are not refereed publications. Citations should appear as follows. EXAMPLE: Authors. 2017. Title of presentation. Waste to Worth: Spreading Science and Solutions. Cary, NC. April 18-21, 2017. URL of this page. Accessed on: today’s date.

Aeration to Improve Biogas Production by Recalcitrant Feedstock

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Purpose

Why aerate biogas digesters?

Most agricultural waste is largely composed of polymers such as lignin and complex carbohydrates that are slowly or nearly completely non-degradable in anaerobic environments. An example of such a waste is chicken litter in which wood chips, rice hulls, straw and sawdust are commonly employed bedding materials.  This makes chicken litter a poor candidate for anaerobic digestion because of inherently poor digestibility and, as a consequence, low gas production rates.

Previous studies, however, have shown that the addition of small amounts of air to anaerobic digestates can improve degradation rates and gas production. These studies were largely performed at laboratory-scale with no provision to keep the added air within the anaerobic sludge.

What Did We Do?

Picture of 4 digesters with sprayer tanksFour digesters were constructed out of 55 gallon sprayer tanks. The digestate was 132 L in volume with a dynamic headspace of 76 L. At the bottom of each tank a manifold was constructed from ½” PVC pipe in an “H” configuration and with a volume of approximately 230 mL. The bottom of the manifold had holes drilled in it to allow exchange with the sludge. Tanks were fed 400 g of used top dressing chicken litter (wood shaving bedding) obtained from a local producer (averaging 40% moisture and 15% ash) in 2 L of water through a port in the tank [labeled “1” in figure]. Two hundred mL of air were fed to the manifold through a flow meter [2] 0, 1, 4, or 10 times daily in 15-minute periods at widely spaced intervals by means of an air pump and rotary timer [4]. A gas port [3] at the top of the tank allowed for sampling and led to a wet tip flow meter (wettipflowmeters.com) to measure gas production. Digestate samples were taken out of a side port [5] for measurement of water quality and dissolved gases and overflow was discharged from the tank by means of a float switch wired in line with a ½” PVC electrically actuated ball valve.

Seven dried and weighed tulip poplar disks were added to each tank at the beginning of the experiment. At the end of the experiment, the disks were cleaned and dried for three days at 105 0C before re-weighing. Dissolved and headspace gases were measured on a gas chromatograph equipped with FID, ECD, and TCD detectors. Water quality was measured by standard APHA methods.

What Have We Learned?

Graph of chemical oxygen demand per liter and graph of liters of biogas per day

Adding 800 mL of air daily increased biogas production by an average of 73.4% compared to strictly anaerobic digestate. While adding 200 mL of air daily slightly increased gas production, adding 2 L per day decreased gas production by 16.7%.

Aerating the sludge improved chemical oxygen demand (COD) with the greatest benefit occurring at 2,000 mL added air per day. As noted, however, this decreased gas production in the control indicating toxicity to the anaerobic sludge.

The experiment was stopped after 148 days. When the tanks were opened, there was widespread fungal growth both on the surface of the digestate and the wood disks in the aerated tanks [left], whereas non-aerated tanks showed little evidence of fungal growth [right]. While wood disks subjected to all treatments lost significant mass (t-test, α=0.05), disks in the anaerobic tank lost the least amount of weight on average (6.3 g) while all other treatments lost over 7 g weight on average.

Picture of widespread fungal growth on the surface of the digestate and the wood discs in aerated tanks

Future Plans

Research on other feedstocks and aeration regimes are being conducted as are 16s and 18s community analyses.

Chart of grams dry weight pre experiment and post experiment

Corresponding author (name, title, affiliation)

John Loughrin, Research Chemist, Food Animal Environmental Research Systems, USDA-ARS, 2413 Nashville Rd. B5, Bowling Green, KY 42104

Corresponding author email address

John.loughrin@ars.usda.gov.

Other Authors

Karamat Sistani, Supervisory Soil Scientist, Food Animal Environmental Research Systems. Nanh Lovanh, Environmental Engineer, Food Animal Environmental Research Systems.

Additional Information

https://www.ars.usda.gov/midwest-area/bowling-green-ky/food-animal-envir…

Acknowledgements

We thank Stacy Antle and Mike Bryant (FAESRU) and Zachary Berry (WKU Dept. of Chemistry) for technical assistance.

Inclusion of the Environment Bottom Line in Waste to Worth: The Interaction Between Economics, Environmental effects, and Farm Productivity in Assessment of Manure Management Technology and Policy

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Purpose

In a global context, the pork industry constitutes a huge economic sector but many producers operate on very thin margins. In addition, pork is one of the largest and most important agricultural industries in North Carolina and the United States but faces a number of challenges in regards to waste management and environmental impacts.On more local scales, swine producers face a number of additional constraints including land availability, waste management options (technical and regulatory), nutrient management costs, profits, risk, and return on investment. In the face of increasingly stringent environmental regulations, decreasing land availability, and higher costs for fertilizer, it is necessary to consider alternative technologies with the potential for improving environmental conditions and creating value added products. Technology assessments generally focus on technical performance as the measure of “utility” or usefulness. Primary physical performance measures such as efficiency, production rate, and capacity, while necessary may not be sufficient for capturing the overall value of a technology. A significant amount of research has evaluated the feasibility of technology adoption based on traditional economic measures but far less research has attempted to “value” environmental performance either at farm-scale or in the larger context (e.g. supply chain response to changes in technology or policy and regulation). Considering response over time, the extent to which environmental and economic policies and regulations positively or negatively affect technology innovation, emission and nutrient management, competitiveness, and productivity, remains largely unknown.

The purpose of this study is to evaluate the environmental and economic tradeoffs between current swine waste management practices in North Carolina and alternative scenarios for future on-farm decision making that include new technologies for waste removal, treatment, and nitrogen recovery. In addition, we begin to understand these economic and environmental tradeoffs in the context of various environmental policy and regulation scenarios for markets of carbon, electricity, and mineral fertilizer.

What did we do?

Using waste samples from swine finishing farms in southeastern NC, laboratory and bench scale experiments were conducted to determine the quantity and quality of biogas generation from anaerobic digestion and nitrogen recovery from an ammonia air stripping column. Based on these data as well as information from literature, six trial life cycle assessment scenarios were created to simulate alternatives for annual manure waste management for one finishing barn (3080 head) on the farm. Materials, energy, and emissions were included as available for all system components and processes including but not limited to waste removal from barns (flushing or scraping), treatment (open air lagoon or covered lagoon digester), nitrogen recovery (ammonia air stripping column), and land application (irrigation). A description of the scenarios as well as processes that are included/excluded for each can be found in Table 1. All scenarios were modeled over a one year operational period using a “gate to gate” approach where the mass and energy balance begins and ends on the farm (i.e. production of feed is not included and manure is fully utilized on the farm). It was assumed that each scenario included an existing anaerobic treatment lagoon with manure flushing system (baseline, representative of NC swine farms). In the remaining scenarios, the farm had an option of covering the lagoon and using it as a digester to produce biogas (offsetting natural gas); covering the digester and ammonia air stripping column for nitrogen recovery (offsetting mineral ammonium sulfate); installing a mechanical scraper system in the barn (replaces flushing); and/or different combinations of these. Open LCA, an open source life cycle and sustainability assessment software, was used for inventory analysis and the Tool for Reduction and Assessment of Chemicals and Other Environmental Impacts (TRACI 2.0) was used to characterize environmental impacts to air, water, and land. From Table 2 preliminary results indicate that all scenarios had a similar pattern in terms of impact for the assessed categories. The open air lagoon had the highest overall environmental impact followed by scraping manure with digestion and recovery and scraped slurry digestion with no nutrient recovery. Flushed manure to the digester with nutrient recovery had the lowest overall environmental impact, followed closely by scraped whole slurry to the digester with nutrient recovery.

Table 1. Life cycle assessment scenarios with waste management processes included in evaluation

Table 2. Relative impact of scenarios for selected environmental indicators

Using energy and emissions data from the initial life cycle assessment on alternative scenarios for swine waste management systems we have started to characterize the environmental and economic outcomes arising from selected on farm technologies. More specifically we began to examine the regulatory, institutional, and market barriers associated with technology adoption within the swine industry. We provide a theoretical model to support quantification of the change in revenues and expenses that result from changes in three major markets connected to swine production – carbon, electricity, and fertilizer. We examine some of the economic characteristics of environmental benefits associated with changes to farm practices. Finally, we discuss implications for innovation in technology and policy.

What have we learned?

Preliminary results are somewhat mixed and further research is needed to see how sensitive the life cycle assessment inputs and outputs are to system components. While there is a clear indication that covering lagoons, with or without additional nutrient recovery, reduces environmental impact – farm scale systems can be quite expensive and no further determination can be made until a full economic analysis has been conducted. Modeling secondary effects, such as increased ammonia emissions in barns from flush water recirculated from digesters, remains to be included. Besides farm level cost and returns, review of literature has pointed to additional barriers to adoption of reduced environmental impact technologies. Examples of barriers include deficient or non-existent markets for environmental benefits, and various state and federal regulations and policies related to renewable energy, carbon offsets, new farm waste management technology, etc. Solutions such as better cooperation between energy firms, regulatory agencies, and farmers as well as increased financial incentives such as carbon credits, renewable energy credits, net metering options, and enabling delivery of biogas to natural gas pipelines can greatly increase the profitability and implementation of this technology on NC hog farms.

Future Plans

As this is an ongoing multi-disciplinary project, future plans include the expansion of existing data to form a more comprehensive life cycle inventory with options for both new and existing swine farms, which include additional options for waste treatment, nutrient recovery, and land application/fertilizer methods, etc. Energy and emissions data from the life cycle model will continue to be utilized as inputs into a more fully integrated model capable of reflecting the true “cost” and “values” associated with waste management treatment systems. In addition, it is expected that the integrated model will include the flexibility to simulate overall costs and returns for various sizes of operations within the county, region, and if possible state-wide.

Corresponding author, title, and affiliation

Shannon Banner, Graduate Student, North Carolina State University

Corresponding author email

sbcreaso@ncsu.edu

Other authors

Dr. John Classen, Dr. Prince Dugba, Mr. Mark Rice, Dr. Kelly Zering

Acknowledgements

Funding for this project was provided by a grant from Smithfield Swine Production Group

The authors are solely responsible for the content of these proceedings. The technical information does not necessarily reflect the official position of the sponsoring agencies or institutions represented by planning committee members, and inclusion and distribution herein does not constitute an endorsement of views expressed by the same. Printed materials included herein are not refereed publications. Citations should appear as follows. EXAMPLE: Authors. 2017. Title of presentation. Waste to Worth: Spreading Science and Solutions. Cary, NC. April 18-21, 2017. URL of this page. Accessed on: today’s date.

Assessment of Coordinated Anaerobic Digestion of Dairy Manure


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Purpose            

Improving the economic feasibility of anaerobic digestion projects for processing dairy manure.

What did we do? 

We completed a study that evaluated the economics of dairy manure granulation as means to export phosphorus from P-sensitive watersheds. To achieve this goal we developed a techno-economic optimization model that considers all dairy farms within the watershed simultaneously to determine the minimum break-even price for the granulated manure.

A second study was developed to assess the economics of anaerobic digestion using a techno-economic optimization model. We incorporated different revenue sources (power sale, methane destruction credits, renewable energy certificates (RECs) and tipping fee (if co-substrate is available). The model evaluated the project feasibility over ranges of values for technical and economic parameters to quantify the project resilience to uncertainty in process conditions.

What have we learned? 

The results from the first study indicated that multi-farm participation can significantly improve feasibility and overall economics of manure granulation. Herd sizes were found to be a critical parameter in deciding whether a farm can economically participate in coordinated management. For manure granulation projects, liquid-solid separation followed by transportation of separated solids was always more economical than transporting raw manure from satellite farm to central processing facility. In the second study, electricity sale price was found to be the key parameter that determines the feasibility of anaerobic digesters. The hub-spoke configuration, where a large central farm hosts the digester and smaller surrounding farms contribute to it was found to be the most favorable arrangement. The size of the hub farm was critical to the feasibility of the project. Similarly, transportation distance was a critical factor that constrained the extent of cooperative digesters.

Future Plans    

The information generated from these studies is being written into peer-review publications and factsheets to share insights of collaborative manure management with a wider audience.We are currently expanding the model by adding the option for manure transportation via pipelines. Furthermore, we are also incorporating additional biogas utilization technologies,i.e., natural gas sale over pipelines and also the utilization of power/heat on-site in manure upgrading and processing.

Corresponding author, title, and affiliation        

Troy M. Runge, Associate Professor, University of Wisconsin-Madison

Corresponding author email    

trunge@wisc.edu

Other authors   

Mahmoud A. Sharara, Rebecca Larson

Additional information

1. http://www.are.wisc.edu/

2. Sharara, Mahmoud, Apoorva Sampat, Laura W. Good, Amanda S. Smith, Pamela Porter, Victor M. Zavala, Rebecca Larson, and Troy Runge. “Spatially explicit methodology for coordinated manure management in shared watersheds.” Journal of Environmental Management 192 (2017): 48-56.

3. Sharara, Mahmoud, Qiang Yang, Thomas L. Cox, and Troy Runge. “Techno-economic assessment of dairy manure granulation.” In 2016 ASABE Annual International Meeting, p. 1. American Society of Agricultural and Biological Engineers, 2016.

Acknowledgements       

This work is based on research supported by the USDA National Institute of Food and Agriculture for its financial support (USDANIFABRDI Grant No. 2012-10006-19423) and funding from Dane County, Wisconsin under Award Number 12486.

Innovative Business Models for On-farm Anaerobic Digestion in the U.S.

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Purpose

AgSTAR is a collaborative voluntary program of the Environmental Protection Agency (EPA) and United States Department of Agriculture (USDA). AgSTAR promotes the use of anaerobic digestion (AD) systems to advance economically and environmentally sound livestock manure management. AgSTAR has strong ties to industry, government, non-profit and university stakeholders and assists those who enable, purchase or implement anaerobic digesters by identifying project benefits, risks, options and opportunities.

Anaerobic digestion (AD) continues to be a sustainable manure management opportunity with growing interest in innovative business models for project development.   AD systems provide a number of benefits, including improved nutrient management, locally sourced renewable energy, and diversified revenue streams for farmers.   As energy prices remain low across the country, and interest grows in managing food waste and organics outside of landfills, new business models have been implemented to make these on-farm AD projects viable. This presentation will provide a national overview of the livestock AD sector, explore new AD projects across the U.S., and highlight successful projects with innovative business models.

The presentation will cover several case studies of AD projects on topics including:

  • Third-party ownership and development of projects;
  • Food waste collection and boosting project profitability through tip fees and increased biogas production;
  • Eco-market products from dairy manure fibers; manure-based alternatives to peat moss for the horticulture industry; and
  • Biogas to vehicle fuel; opportunities and financial considerations.

With only 244 operating on-farm AD projects across the U.S., there exists a great opportunity for market share growth at the approximately 8,000 farms that could support a project. This, coupled with the desire for alternative management of organic waste streams, provides a unique opportunity for this sector to grow in the near future.

Pigs in a fieldCows in a field

Corresponding author, title, and affiliation

Nick Elger

Program Manager

AgSTAR & Global Methane Initiative

U.S. Environmental Protection Agency

1201 Constitution Ave NW, Mail code: 6207J

Washington, D.C. 20460

Phone: 202.343.9460

Email: elger.nicholas@epa.gov

https://www.epa.gov/agstar

https://www.globalmethane.org/